Hagerty Inc-A (NYSE:HGTY) Surges on Q3 Earnings Beat and Raised 2025 Outlook

HAGERTY INC-A (NYSE:HGTY) has reported third-quarter financial results that significantly exceeded analyst expectations, prompting a substantial upward revision to its full-year outlook. The automotive enthusiast brand and specialty insurance provider delivered both revenue and earnings beats for the quarter ended September 30, 2025, with the market responding positively to the strong performance.

Earnings Performance Versus Estimates

The company's Q3 2025 results demonstrated robust operational execution, with key financial metrics surpassing consensus estimates by considerable margins. The performance highlights a period of accelerated growth and profitability improvement.

• Revenue: Reported $379.99 million versus analyst estimates of $361.84 million, representing a beat of approximately 5%.
• Earnings Per Share (Non-GAAP): Reported $0.13 per share, significantly exceeding the estimated $0.0809 and marking a beat of over 60%.

This earnings surprise indicates that the company is not only growing its top line but is also translating that growth into profitability more effectively than the market had anticipated. The substantial EPS beat suggests strong cost management and operational leverage within the business model.

Market Reaction and Price Action

The market's immediate response to the earnings release has been decisively positive. In pre-market trading, the stock has surged, reflecting investor approval of the earnings beat and the upgraded guidance. This price action represents a sharp reversal from the stock's performance over the preceding month, which had seen a decline. The significant pre-market gain suggests that the results have alleviated prior investor concerns and are being interpreted as a sign of sustained momentum.

Revised 2025 Outlook

A central driver of the positive market sentiment is the company's decision to raise its full-year 2025 guidance. The updated outlook now projects much stronger growth than previously anticipated, positioning the company well above current analyst expectations for the year.

• Total Revenue Growth: Increased to a range of 14-15%.
• Net Income Growth: Sharply raised to a range of 58-65%.
• Adjusted EBITDA Growth: Increased to a range of 37-41%.

When compared to the provided analyst estimate for full-year 2025 sales of $1.393 billion, the company's new revenue growth target suggests a confident trajectory that aligns with or potentially exceeds the market's current sales expectations. The dramatic increases projected for Net Income and Adjusted EBITDA growth are particularly noteworthy, signaling a significant enhancement in profitability.

Press Release Summary

The earnings announcement primarily focused on the strong third-quarter financial results and the subsequent increase to the full-year 2025 outlook. The company highlighted its position as a leading specialty vehicle insurance provider for automotive enthusiasts. The raised guidance across all major financial metrics underscores management's confidence in the company's strategic initiatives and its ability to capitalize on market demand within the enthusiast vehicle segment. The positive news from Broad Arrow's auction, achieving over CHF 22 million, provides additional context about the vitality of the classic and collector car market, which is core to Hagerty's ecosystem.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the Hagerty earnings and estimates page.

Disclaimer: This article presents factual information based on publicly available data and should not be construed as investment advice. All investment decisions carry risk, and individuals should conduct their own research or consult with a qualified financial advisor before making any investment decisions.